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Establishes the New York workforce stabilization act; requires certain businesses to conduct artificial intelligence impact assessments on the application and use of such artificial intelligence and to submit such impact assessments to the department of labor prior to the implementation of the…
In one paragraph
New York's S 1854-A, the New York workforce stabilization act, would add Labor Law § 201-j barring employers with more than 100 employees from using AI without a prior impact assessment submitted to the Department of Labor at least 30 days before implementation. It would also add Tax Law § 186-h, a 2% surcharge on business income base for corporations displacing workers through automation or using AI for data mining. Referred to Labor January 7, 2026; it has not passed either chamber.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill is pending. If enacted, employers with over 100 employees would need AI impact assessments filed with Labor, and corporations displacing workers via automation or using AI for data mining would pay a 2% surcharge.
Key provisions
- Labor Law § 201-j: no employer (a state-resident business that is not a small business and employs more than 100 people) may use AI unless an impact assessment was done first, repeated at least every two years and before material changes
- Assessments must cover objectives, algorithms and models, training data, use of personal data, and employees displaced or expected to be displaced, and go to the Department of Labor at least 30 days before implementation
- Tax Law § 186-h.1: 2% surcharge on business income base for corporations terminating or substantially reducing hours of 25+ (100-250 employees), 50+ (251-500), 100+ (501-1,000) or 250+ (1,001 or more) employees through automation or AI
- Waivers are possible for businesses with labor shortages, agricultural production needs or small businesses needing the technology to stay viable; Labor must report waivers annually
- § 186-h.2: 2% surcharge on business income base for corporations using AI for data mining; proceeds go to worker retraining, workforce development or the unemployment insurance fund
- The Labor Law section would take effect immediately and the Tax Law section January 1, 2026; the surcharges are administered and collected like Article 28 taxes and no other penalty is stated; Assembly companion A5429
Latest legislative action
Jan 7, 2026. referred to labor
Sponsors (showing 5 of 13)
| Name | Role |
|---|---|
| HOYLMAN | Primary |
| JORDAN | Primary |
| Michelle Hinchey D | Primary |
| AKSHAR | Cosponsor |
| COMRIE | Cosponsor |
Topics and industries
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Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error